Kraft

Kraft (Kraft Foods Inc.) is the largest packaged food company in the U.S. and second only to Nestlé in terms of world sales. Its North America unit makes the world's top selling cheese brand (Kraft). Other brands under the Kraft label include Nabisco and Oreos. U.S. brands are also sold internationally. Altria (formerly Philip Morris), spun off Kraft in 2007. In 2010, Kraft had total revenues of $49.21 billion. Its CEO, Irene Rosenfeld, received total compensation of $26.3 million in 2009, making her the United States' second-highest-paid female.

Ties to the American Legislative Exchange Council
Kraft is on the corporate ("Private Enterprise") board of the American Legislative Exchange Council (ALEC). Derek Crawford, District Director for State & Local Government Affairs of Kraft Foods Global, Inc., is Kraft's representative on ALEC's corporate board as of 2011. Crawford has also represented Kraft on ALEC's Commerce, Insurance and Economic Development Task Force and Tax and Fiscal Policy Task Force.

Lobbying and Political Contributions
Open Secrets reports that in 2010, Kraft's PAC contributed $454,918 to federal candidates, with 51% going to Democrats and 48% to Republicans.

In 2010, Open Secrets reports that Kraft spent $3.65 million on lobbying. $3 million was spent on in-house lobbyists and $650,000 spent on lobbying firms including Capitol Tax Partners; Intl Business-Government Counsellors; Leonard & Co.; Olsson, Frank & Weeda; and Russell & Barron.

A full list of bills lobbied for can be seen HERE.

Kraft Foods is a member of the American Meat Institute.

Products
The company's Oscar Mayer, Kraft, Philadelphia, Maxwell House, Nabisco, Oreo, Jacobs, Milka, and LU brands all have revenues of at least $1 billion and over 50 other brands regularly hit the $100 million mark. Some of Kraft's other U.S. brands include: General Foods International, Gevalia, Maxwell House, Sanka, Yuban, Country Time, Crystal Light, Kool-Aid, Tang, Oscar Mayer, Louis Rich, DiGiorno, Jack's, South Beach Diet, Tombstone, Velveeta, Boca veggie burgers, Cheez Whiz, Breakstone's sour cream, Shake ‘n Bake, Cool Whip, Jell-O, Post cereals, Chips Ahoy!, Ritz and Fig Newtons.

Kraft's $19 billion offer to acquire Cadbury was accepted by a majority of Cadbury shareholders in 2010. Warren Buffett's Berkshire Hathaway owned 9.4% of Kraft; Buffet opposed the Cadbury deal and sold 1/3 of Berkshire's stake in Kraft.

Marketing to Children
According to a 2005 Wall Street Journal article, "a major government-commissioned study found advertising contributes to childhood obesity" and two bills before Congress "proposed regulation of children's advertising." Kraft, "the nation's biggest food company," knew it "risked being depicted as a corporate villain." So, in January 2005, the company "announced it would quit advertising certain products to kids under 12." The announcement came on the same day that the federal government released its updated 2005 Dietary Guidelines for Americans, likely in an attempt to appear aligned with concept of healthy eating.

According to Michelle Simon in her book "Appetite for Profit: How the Food Industry Undermines Our Health and How to Fight Back," the announcement came two weeks prior to a planned presentation for the Institute of Medicine committee on food marketing to children. Kraft's timing was critical to demonstrating to a prestigious government advisory body that self-regulation was working fine. In September 2005, Kraft CEO Roger Deromedi presented Kraft's modified marketing to children policy (expanded to include websites), which included the launch of several new, "healthier" products such as Whole Grain Chips Ahoy cookies, at the Summit on Health, Nutrition and Obesity organized by California Governor Arnold Schwarzenegger. For this, Kraft earned a spot on Schwarzenegger's honor roll of companies making significant commitments to solving the obesity problem.

While Kraft agreed to not market some of its products to children ages six to eleven, including original Kool-Aid, Oreos, and several Post cereals, according to Simon, other products were aimed specifically at the six to eleven age group, including sugar-free Kool-Aid, Chicken Dunks Lunchables Fun Pack, and 1/2 the Sugar Fruity Pebbles. These products, according to Kraft, offer "beneficial nutrients or a functional benefit," and are thus part of the Sensible Solution labeling program, a Kraft-defined nutritional stamp of approval. Rather than reduce overall advertising expenditures for marketing aimed at kids, Simon wrote, Kraft changed the way these funds are allocated.

The media dutifully furthered Kraft's public relations efforts. For example, a headline in the Chicago Tribune read:


 * "Kraft Will No Longer Aim Ads for Unhealthy Snacks at Youngsters."

Marketing to children & "taking control" of discussion
While some criticized Kraft's continued use of cartoons and questioned whether the company should be able to decide "what's healthy and what isn't," policymakers praised Kraft. Kraft's strategy may have been inspired by its sister company, Philip Morris. By "taking control of the discussion about marketing to children", Kraft hoped to "avoid Philip Morris's initial mistakes." According to Kraft's Michael Mudd:


 * "If the tobacco industry could go back 20 or 30 years, reform their marketing, disarm their critics, and sacrifice a couple of hundred million in profits, knowing what they know today, don't you think they'd take that deal in a heartbeat?"

School policies
While Kraft claims to have "eliminated in-school advertising", Kraft products are still sold in schools (although only those which meet the Sensible Solutions criteria). The product packaging for the Sensible Solutions line look virtually identical to the non-advertised regular products (even after vice president Mark Berlind assured that Kraft would change the "look and feel" of its "healthier" products).

Tobacco involvement
A 19-page, confidential Philip Morris (PM) memo by PM lobbyist Kathleen Linehan from 1993 describes PM's efforts to defeat public interest legislation at all levels of government and in the military. Far beyond solely lobbying on tobacco issues, PM works through its food and drink subsidiaries, like Kraft General Foods and Miller Beer to defeat a host of different types of laws aimed at protecting and educating consumers, and benefiting the environment.

(move BGH section to discussion page)

"Recycling not the answer"
She also reveals that PM works through Kraft to fight laws banning the proliferation of non-recyclable packaging (specifically juice boxes and "Capri Sun"-type foil containers, which are made of an unrecyclable composite of paper and aluminum). PM/KGF (which makes a large number of packaged foods like macaroni and cheese, cream cheese, juices and other products) also fight laws mandating the increased recycling of trash, and that PM-drafted legislative bills ("incentive-based alternatives" to mandatory recycling laws) were actually passed in three states (Colorado, Texas and Vermont) by the end of 1994. According to Linehan, PM promotes the view in state and federal legislatures that "recycling is not the answer to solid waste management."

A 1993 PM Corporate Affairs Presentation also indicates that PM mobilizes Kraft employees to create fake "grassroots" efforts to fight laws the company doesn't like, like public smoking restrictions. The 47 page presentation, given by PM Vice President of Corporate Affairs Ellen Merlo to PM suppliers, talks about methods the company uses to defeat clean indoor air laws. Merlo states:


 * "Fortunately, we have good, strong allies we can depend upon when the going gets tough including...the more than 100,000 employees of the various Philip Morris operating companies in the U .S .including Kraft General Foods and Miller Brewing; and you, our major suppliers."

Animal testing
Kraft does animal testing.

Facility information, progress reports & USDA-APHIS reports
For links to copies of a facility's U.S. Department of Agriculture (USDA)-Animal Plant Health Inspection (APHIS) reports, other information and links, see also Facility Reports and Information: Sherburne Pet Food Testing Center, East Hanover, NJ.

USDA AWA reports
As of May 26, 2009, the USDA began posting all inspection reports for animal breeders, dealers, exhibitors, handlers, research facilities and animal carriers by state. See also USDA Animal Welfare Inspection Reports.

Key executives

 * Irene Rosenfeld - Chairman & CEO - $26.3 million in 2009, United States' second-highest-paid female.
 * David Brearton - Executive VP, Operations & Business Services
 * Michael Clarke - Executive VP & President, Kraft Foods Europe
 * Marc Firestone - Executive VP, Corporate & Legal Affairs & General Counsel
 * Sanjay Khosla - Executive VP & President, Developing Markets
 * Karen May - Executive VP, Global Human Resources
 * Timothy McLevish - Executive VP & CFO - $4.31 million
 * Jean Spence - Executive VP - Research & Development
 * W. Anthony (Tony) Vernon, Executive VP & President, Kraft Foods North America
 * Mary Beth West - Executive VP & Chief Category & Marketing Officer

Contact
Three Lakes Drive Northfield, IL 60093

Phone: 847-646-2000

Fax: 847-646-6005

Web address: http://www.kraft.com

SourceWatch resources

 * Altria Group
 * Animal testing
 * Food and Drug Administration
 * Meat & Dairy industry
 * Obesity PR
 * Processed food industry
 * Worldwide Health & Wellness Advisory Council
 * Fredric G. Reynolds

External articles

 * Patricia Callahan, Jeremy Manier, Delroy Alexander Where there's smoke, there might be food research, too: Documents indicate Kraft, Philip Morris shared expertise on how the brain processes tastes, smells, Chicago Tribune, January 29, 2006

External resources
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